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P3-13A Prepare adjusting entries, adjusted trial balance, and financial statements. (LO 2, 3, 4) AP adjustments: Fox Enterprises is owned by Edmund Fox and has a January 31 fiscal year end. The company prepares adjusting entries on an annual basis. The following trial balance was prepared before FOX ENTERPRISES Trial Balance January 31, 2017 Debit Credit Cash $ 4,970 Accounts receivable 14,540 Prepaid insurance 3,960 Supplies 6,580 Equipment 32,350 Accumulated depreciation-equipment $ 12,940 Accounts payable 7,760 Note payable 11,000 Unearned revenue 7,480 E. Fox, capital 18,320 E. Fox, drawings 119,000 Service revenue 214,500 Rent expense 20,750 Salaries expense 66,950 Telephone expense 2,900 $272,000 $272,000Additional information: 1. A one-year insurance policy was purchased on July 1, 2016. 2. A count of supplies on January 31, 2017, shows $920 of supplies on hand. 3. The equipment has an estimated useful life of five years. 4. An analysis of the Unearned Revenue account shows that $5,230 has been earned by January 31, 2017. 5. The eight-month, 6% note was issued on November 1, 2016. Interest and principal are due on the maturity date. 6. Salaries accrued to January 31, 2017, were $1,315. 7. On January 31, 2017, the company had earned but not billed or recorded consulting revenue of $2,675. 8. The telephone bill for January 2017 was $170. It has not been recorded or paid. (Use the Accounts Payable account.) Instructions (a) Prepare T accounts and enter the unadjusted trial balance amounts. (b) Prepare and post the monthly adjusting journal entries on January 31. (e) Prepare an adjusted trial balance at January 31. (d) Prepare an income statement and a statement of owner's equity for the year ended January 31, and a balance sheet as at January 31, 2017. TAKING IT FURTHER Comment on the company's results of operations and its financial position. In your analysis, refer to specific items in the financial statements